OCC Reaches Agreements with Comerica Bank & Trust and Lemont National Bank Over Risk Governance Concerns

The U.S. Treasury Department’s Office of the Comptroller of the Currency (OCC) has reached agreements with two banks over concerns regarding their risk governance practices. Michigan-based Comerica Bank & Trust and Illinois-based Lemont National Bank have avoided penalties but have agreed to certain compliance measures as part of their agreements with the OCC, announced on Thursday.

The OCC identified unsafe and unsound practices at Comerica Bank & Trust, specifically related to the bank’s risk governance framework and internal controls. Similarly, Lemont National Bank was found to have deficiencies in its liquidity risk management and capital planning.

Comerica Bank & Trust is required to submit a written program by June 30 to address risks associated with information technology, asset end-of-life, and third-party relationships. This program must include policies, procedures, and a comprehensive risk assessment of systems, among other measures. Comerica’s board is responsible for ensuring the timely adoption of all corrective actions and verifying adherence to these measures. The OCC will not consider Comerica compliant until all corrective actions are fully adopted, implemented, and adhered to.

For Lemont National Bank, the agreement stipulates that within 90 days, the bank’s board must appoint a compliance committee comprising at least three members, the majority of whom must be directors but not employees or bank officers. This committee is tasked with implementing various practices, including sending written reports to the board detailing the corrective actions needed to achieve compliance.

In response to the agreement, Comerica stated in an emailed statement that it takes the agreement “very seriously” and considers it a “top priority for Comerica Incorporated’s indirect subsidiary.” Lemont National Bank did not immediately respond to requests for comment.

By fLEXI tEAM